DoorDash announced Monday that it is partnering with the Albertsons Companies to offer on-demand grocery delivery at nearly 2,000 of Albertson’s stores, including Safeway, Vons and Jewel-Osco.
Shares of DoorDash rose more than 5% on Monday, while Albertsons gained more than 2%.
The partnership shows how DoorDash can help grocery stores like Albertsons compete with Amazon and Walmart, which currently lead the online grocery delivery market.
“As expectations for convenience, speed and ease continue to grow, consumers can now order
grocery and essential items on demand for one-hour delivery through DoorDash’s top-rated marketplace with no slots, queues or minimum orders required, “the company said in a statement. Albertsons will offer more than 40,000 grocery items from stores for delivery.
The companies said the partnership includes a new personalized loyalty program, extended delivery hours, a meal kit offering, prepared meals and specialty items.
Customers in select markets can order food through their local Albertsons store website for same day delivery. The service is powered by DoorDash Drive, the company’s white label fulfillment platform that provides direct delivery to any business.
Food and grocery delivery has been a bright spot during the coronavirus pandemic, with people limiting their time away from home. The pandemic reinforced online shopping behaviors in a high proportion of shoppers, according to Coresight Research.
More than a quarter of shoppers said they plan to shop for groceries online more often, according to the company’s US Online Grocery Survey conducted in April.
“Grocery delivery is really in its infancy, and what the pandemic did was really accelerate the need to bring more stuff into the neighborhood,” DoorDash CEO Tony Xu told CNBC’s “TechCheck.”
That trend has led companies like DoorDash to expand beyond restaurant home delivery. DoorDash now also delivers flowers, pet supplies, convenience store products, and groceries, for example. According to the company’s latest earnings report, orders in these new categories grew 40% compared to the previous quarter.
Earlier Monday, Uber also announced that it was acquiring the remaining 47% stake in Cornershop, the grocery delivery startup, in an all-stock transaction.
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